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 Educating Tomorrow's Franchisees
 June, 2015 
 

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Risk is such an interesting topic. There are hundreds of books written on the topic and mathematicians have spent many lifetimes studying how to quantify, measure and calculate risk. The entire body of statistics is dedicated to this 'science'. Yet after all these years we are still no closer to knowing which path to take in life.

 

In a recent presentation we had a very interesting discussion between a former employee, Denise, and a former business owner, Jan. It went something like this.

 

Denise, "I would like to open a business but it is too risky".

 

Jan, "I don't know, I think being an employee is too risky. Why do you think being the owner is risky?"

 

Denise- "Everyone knows being a business owner is risky. You need to invest your money."

 

Jan - "But being an employee can be risky also.  If you lose your job, you lose 100% of your income.  With a business, I own it. I can grow it and I can sell it. That has been a good way for me to create wealth"

 

Denise- "Every investing newsletter will tell you that the best way to reduce risk is to diversity.  I diversity by buying a wide variety of mutual funds.  Much safer than owning a business."

 

Jan - "True, but wouldn't having some money in the market and other money in income generating assets, like a business, increase diversification?"

 

Denise- "Yes, I guess so, but if I fail with the business, then I lose my money that I invested"

 

Jan - "True, but if you succeed with the business then you build a valuable asset that creates cash flow, provides tax benefits and has value when you sell it.  Wouldn't that be much better than owning stock."

 

Denise- "Maybe, but it still seems too risky for me."

 

As a class we discussed these two differing points of view. It was an interesting, engaged discussion that shows the many and varied ways in which different people can view the same world.

 

What do you think? Who is right? Who is wrong? Click here to visit our blog.

 

   

Respectfully, 

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Rick Bisio
Founder of The Educated Franchisee
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Why You Need To Create A Personal Mission Statement

 

A personal mission statement is much like a corporate mission statement -- but it is a declaration of who you are, what you stand for and what you want to put out into the world. Personal mission statements are simply a conscious call to action. They can be helpful in providing awareness of your "future self" and will assist you in understanding your own motivation, or lack there-of!

The laser effect. A personal mission statement helps give you a sense of direction -- without it you cannot resolutely move toward manifesting your goals. Imagine the difference between a light bulb and a laser beam. The light bulb is a small amount of energy that casts an expansive light, whereas the laser (in this case represented by a mission statement) is clear, intentional energy. With a single-minded focus on your intentions it is easier to strategize and be creative. It goes back to the adage, "if you fail to plan, you plan to fail."

 

How do you develop a personal mission statement? ....

Go to Huffington Post.com, Click Here
Turn Your Vacation into a Tax Deduction

Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his vacation. Here's how he did it.

1. Make all your business appointments before you leave for your trip.  Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.  Wrong.

 

You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.

 

Let's say Tim is a manufacturer of green office products  ..... 

 


 Go to Plum CPA Newsletter, Click Here 
5 Ways Money Can Buy Happiness  
    
Nobel prize-winning economist Daniel Kahneman has garnered lots of attention with research that says this largely is true. Beyond about $75,000 in annual income - enough to fund a moderately comfortable lifestyle - more money does not make people much happier, he said

Not so fast, say two young academics. Elizabeth Dunn, an associate professor of psychology at the University of British Columbia, and Michael Norton, an associate professor of marketing at Harvard Business School, have written a new book called "Happy Money: The Science of Smarter Spending." In the book, they make a persuasive case that money does have the ability to buy happiness, and it's not how much money you have that matters, but how you spend it. ......

Go to U.S. News and World Report, Click Here 
20 Misused Words That Make Smart People Look Dumb

 

We're all tempted to use words that we're not too familiar with.

If this were the only problem, I wouldn't have much to write about. That's because we're cautious with words we're unsure of and, thus, they don't create much of an issue for us.

 

It's the words that we think we're using correctly that wreak the most havoc.

 

Often, it's the words we perceive as being more "correct" or sophisticated that don't really mean what we think they do. There are 20 such words that have a tendency to make even really smart people stumble........

 

Go to Forbes, Click Here
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Thanks for your interest in business ownership.  If there is anything we can do to improve this newsletter or any articles that you think would be valuable to our membership, please let us know.  Some of our best ideas come from our members.
 
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Author - Rick Bisio,  [email protected]